Trump Considers 100% Tariff on Canadian Goods Amid China Trade Deal Tensions

Trump Threatens Tariff on Canadian Imports Over China Deal

President Donald Trump has issued a warning of imposing a 100% tariff on all Canadian goods entering the United States if Canada proceeds with its trade agreement with China. This move comes in response to Canadian Prime Minister Mark Carney's efforts to strengthen trade ties with China.

"If Canada makes a deal with China, it will immediately be hit with a 100% tariff on all Canadian goods and products coming into the U.S.A.," Trump stated via his Truth Social account, reacting to reports of Carney's diplomatic endeavors.

Trump further criticized Carney for potentially turning Canada into a conduit for Chinese goods targeting the US market.

"China will eat Canada alive, completely devour it, including the destruction of their businesses, social fabric, and general way of life," Trump added.

Details of the Canada-China Agreement

On January 16, Canada and China announced a trade agreement aimed at reducing tariffs across various sectors. Key aspects include lowering Canada's surtax on Chinese electric vehicles from 100% to 6.1%, facilitating up to 49,000 annual imports. In return, China will reduce tariffs on Canadian canola seeds from 85% to 15% by March 1, with extended tariff relief on Chinese steel and aluminum through 2026.

Despite these developments, Carney's attempt to pivot towards China raises concerns regarding the consistency of his stance on the global rules-based order, particularly when juxtaposed with US-Canada trade relations.

Implications for Canada-US Trade Relations

Canada's economy heavily relies on the US, with over 75% of its exports directed south, compared to a minimal share to China. US officials argue that China's industrial overcapacity and increasing global trade barriers pose challenges to expanding Canadian exports to China. Analysts speculate that Carney might eventually shift focus back to closer cooperation with the US.